Monday, November 9, 2015

Should you increase your withholding?

Should
you increase your withholding?

Will
the federal income tax withheld from your wages be enough to meet your 2015
federal income tax liability? If not, you can choose to make estimated tax
payments. However, you should be aware that the penalty rules for underpayment
of estimated taxes is applied to each installment – meaning you may owe a
penalty when your estimated tax payments (plus withholding) total less than 25%
of your required annual payment. Increasing your withholding for
the last two months of the year can help you avoid this penalty. Contact us to
learn how the estimated tax rules apply to you.